ABSTRACT
This chapter deals with the basics of negotiating an outsourcing agreement that the outsourcing procurement team will need to understand if a satisfactory and balanced agreement is to be delivered. Negotiation issues are discussed under the negotiating team, the negotiating process and general issues. A senior legal adviser will almost certainly be needed towards the end of the negotiating round to facilitate final contract drafting. If the supplier is unhappy with the agreement at the outset of the deal, the risk of failure increases dramatically. The negotiation leader may wish to appoint specialist advisers as full-time members of the negotiation team to provide support or commercial advice associated with the proposed agreement. Experts on specific parts of the service requirements may be needed for relevant parts of the negotiation. However, control of the documentation is a significant negotiation advantage. Prepare negotiation accommodation carefully. A common defence against difficult negotiation questions is complaint or objection.
